‘Cap and trade' is the nucleus of the so-called flexible mechanisms of climate protection: the maximum use of a resource (here, a particular quantity of greenhouse gas emissions) is determined; from this, individual emission allowances are derived and allocated. Emission allowances can be...

With growing concerns among nations to curb pollution levels while maintaining the growth in their economic activities, the emission trading (ET) industry has become active. As per Multi-Commodity Exchange of India, with the increasing ratification of Kyoto Protocol (KP) by countries and rising...

China urbanization is associated with both increases in per-capita income and greenhouse gas emissions. This paper uses micro data to rank 74 major Chinese cities with respect to their household carbon footprint. We find that the "greenest" cities based on this criterion are Huaian and Suqian...

We propose a model for trading in emission allowances in the EU Emission Trading Scheme (ETS). Exploiting an arbitrage relationship we derive the spot prices of carbon allowances given a forward contract whose price is exogenous to the model. The modeling is done under the assumption of no...

The Environmental Kuznets Curve (EKC) hypothesizes that the income-pollution relationship has an inverted U shape: pollution increases with income up to a turning point beyond which it decreases. The empirical literature has concentrated on estimation of this relationship at the mean employing...